Unlocking Your Cash Flow with Transportation Factoring!

February 2, 2024 By Accrue Factoring, Inc

Smooth Sailing: Unlocking Your Cash Flow with Transportation Factoring!

Are you a transportation business owner struggling with cash flow issues? Do you find yourself constantly maneuvering through rough waters, trying to keep your business afloat? Well, fear not, because transportation factoring is here to save the day! This innovative financing solution allows you to unlock the cash tied up in your unpaid invoices, providing you with a smooth sailing experience toward financial success. So, hop on board, and let’s navigate the sea of cash flow with transportation factoring!

Smooth Sailing Ahead: Navigate Cash Flow with Transportation Factoring!

Picture this: you’re sailing through the vast ocean of business, but suddenly, a storm hits, and you find yourself struggling to keep your ship steady. This is a common scenario for transportation business owners who face cash flow challenges due to delayed payments from clients. However, with transportation factoring, you can navigate these turbulent waters with ease. By selling your unpaid invoices to a factoring company, you can receive an immediate advance of up to 95% of the invoice value. This influx of cash allows you to cover daily expenses, and fuel costs, and even invest in expanding your fleet. With transportation factoring, you can sail smoothly towards your financial goals, leaving cash flow worries behind!

But how does transportation factoring work? It’s simple! Once you’ve delivered your goods or services and generated an invoice, instead of waiting for your customer to pay, you sell that invoice to a factoring company. The factoring company then advances you a significant portion of the invoice, usually within 24 hours, allowing you to access the cash you need to keep your ship sailing smoothly. The factoring company then takes care of collecting payment from your customer, and handling all the administrative tasks so that you can focus on what you do best – running your transportation business. Once your customer pays the invoice in full, the factoring company will release the remaining amount to you, minus a small factoring fee. It’s a win-win solution that ensures your cash flow stays steady, allowing you to set sail toward success!

Ahoy, captain! Now that you’re aware of the benefits of transportation factoring, it’s time to chart your course toward financial stability. Don’t let cash flow obstacles hinder your journey; unlock the power of transportation factoring and experience smooth sailing ahead. With the ability to access immediate cash, cover expenses on time, and expand your business, you’ll be riding the waves of success in no time. So, weigh anchor and embrace the world of transportation factoring – your financial voyage awaits!

Benefits of Factoring Invoices

November 8, 2023 By Accrue Factoring, Inc

If your business wants working capital to pay bills, fund growth, or negotiate discounts, then it’s time to consider the top 10 benefits of factoring invoices.

All business owners experience the ebb and flow of cash flow, but many options are dwindling with banks tightening the extension of credit. Fortunately, accounts receivable funding is going strong after decades of continued growth. Invoice factoring options are now more flexible and cost less than ever before.

Factoring companies will fund an immediate cash payment on the invoice amount, collect payment from your customer, and release the reserve balance less the factoring fee to you (for more details and an example, see How Invoice Factoring Works).

Rather than a loan, factoring is the purchase of outstanding invoices at a discount. This distinction between selling invoices and obtaining credit plays a vital role in the many benefits unique to factoring. Here’s a look at the…

Top 10 Benefits Of Factoring Invoices

1. Fast Access to Cash

The factoring process is quick and easy, with funds provided within 24-48 hours on approved invoices. The initial setup averages 5-10 days from receipt of the factoring application and supporting documentation. That’s lightning fast compared to the weeks and months it takes most banks to decide on business loans!

2. Cash Flow Without Debt

Since factoring is not a loan, it doesn’t add to the liabilities on your balance sheet. That means no monthly loan payments and a clean balance sheet!

3. Flexible Terms

Many of today’s factoring programs have no long-term contracts, minimums, or maximums. Pick and choose how often and what invoices you want to factor in. Factoring is designed to grow with you, so as sales increase, does your access to funding!

4. Reasonable Factoring Fees

The cost of factoring invoices has come way down over the years, with advances up to 95% and fees as low as 1.5%. The prices vary by industry, volume, number of invoices, advance rates, customer creditworthiness, and how long it takes customers to pay. Please use our invoice factoring application to find out exactly what programs are available for your business.

5. Stay In Control

You need cash, not a boss! Factoring companies don’t dictate how you spend the funds. There are no requirements to buy equipment or other assets.

6. Relieve Stress

No more waiting on your customers to make payments so you can make yours. Pay bills, meet payroll, and remit taxes on time without worrying about late fees or damaged credit.

7. Increase The Bottom Line

Many companies use factoring to increase profits or fund growth. Take advantage of early payment discounts, negotiate bulk discounts from suppliers, increase inventory for large orders, or add the staff and overhead required to fund expansion. When structured thoughtfully, it is possible to use factoring to either save or make money far over the factoring costs.

8. Strong Financials Not Required

You don’t need great credit, years in business, or a long, strong financial history to qualify for factoring services. The factoring company looks to the strength of your customers paying on the invoices rather than you. That is good news if your credit or business has hit a few bumps as you try to build (or re-build) your business.

9. Confidently Extend Terms to Customers

Increase sales with the ability to offer credit terms to new or large customers without hurting cash flow! Plus, the factoring company will help you underwrite your new or existing customers’ ability to pay so you can avoid extending terms to high-risk candidates.

10. Professional Receivable Management

Save time, reduce in-house expenses, and improve the turn time on your receivables with professional management. Factoring companies will skillfully handle the paperwork, processing, headaches, and collection of payments on your invoices.

By not increasing debt and freeing up much-needed cash, it’s easy to see why many businesses are using factoring to pay bills, fund growth, increase sales, meet payroll, maintain a good credit rating, or take advantage of early payment discounts.

If you want to know your options, you can start today with our convenient online factoring application!

Different types of freight factoring

October 26, 2023 By Accrue Factoring, Inc

Exploring the Benefits of Freight Factoring for Small Businesses

Small businesses often struggle to manage their cash flow, especially when it comes to paying for freight services. Freight factoring can be a great solution for these businesses, as it provides them with the funds they need to pay for freight services without having to wait for customer payments. This article will explore the benefits of freight factoring for small businesses.

The first benefit of freight factoring is that it provides businesses with immediate access to funds. When businesses use freight factoring, they can receive payment for their freight services within 24 hours, instead of having to wait for customers to pay. This can be especially helpful for businesses that need to pay for freight services quickly, as it eliminates the need to wait for customer payments.

Another benefit of freight factoring is that it can help businesses manage their cash flow more effectively. By providing businesses with immediate access to funds, freight factoring can help them avoid cash flow problems and ensure that they have the funds they need to pay for freight services. This can be especially helpful for businesses that have irregular cash flow, as it can help them manage their finances more effectively.

Finally, freight factoring can help businesses save money. By providing businesses with immediate access to funds, freight factoring can help them avoid late payment fees and other costs associated with waiting for customer payments. This can help businesses save money in the long run, as they won’t have to pay for late fees or other costs associated with waiting for customer payments.

In conclusion, freight factoring can be a great solution for small businesses that need to pay for freight services quickly. It provides businesses with immediate access to funds, helps them manage their cash flow more effectively, and can help them save money in the long run. For these reasons, freight factoring can be a great solution for small businesses that need to pay for freight services quickly.

How to Choose the Right Freight Factoring Company for Your Needs

Choosing the right freight factoring company for your needs is an important decision that can have a significant impact on your business. Freight factoring is a financial service that provides businesses with immediate cash flow by purchasing their accounts receivable at a discounted rate. This type of financing can be a great way to manage cash flow and keep your business running smoothly. However, it is important to choose the right freight factoring company to ensure that you get the best terms and services for your business.

When selecting a freight factoring company, it is important to consider the company’s reputation and experience. Look for a company that has a good track record and a long history of providing reliable services. You should also research the company’s fees and terms to make sure they are competitive and reasonable. Additionally, make sure the company offers the services you need, such as credit checks, collections, and reporting.

It is also important to consider the customer service offered by the freight factoring company. Look for a company that is responsive and willing to answer any questions you may have. Additionally, make sure the company is willing to work with you to customize a solution that meets your specific needs.

Finally, make sure the freight factoring company is compliant with all applicable laws and regulations. This is especially important if you are dealing with international shipments. Make sure the company is registered with the appropriate government agencies and is compliant with all applicable laws and regulations.

By taking the time to research and compare different freight factoring companies, you can ensure that you select the right one for your needs. This will help you get the best terms and services for your business and ensure that your cash flow is managed effectively.

Understanding the Different Types of Freight Factoring Services Available

Freight factoring is a financial service that provides cash advances to businesses that transport goods. It is a form of invoice financing that allows businesses to receive payment for their services quickly, without having to wait for their customers to pay. Freight factoring services can be tailored to meet the specific needs of businesses in the transportation industry.

There are several types of freight factoring services available. The most common type is recourse factoring, which requires the business to repay the advance if the customer does not pay the invoice. Non-recourse factoring does not require the business to repay the advance if the customer does not pay the invoice. This type of factoring is more expensive, but it provides more protection for the business.

Another type of freight factoring service is spot factoring. This type of service provides businesses with a one-time cash advance for a single shipment. This type of service is ideal for businesses that need quick cash to cover expenses related to a single shipment.

Freight factoring services can also be tailored to meet the specific needs of businesses in the transportation industry. For example, some services offer fuel advances, which provide businesses with cash advances to cover the cost of fuel for their vehicles. Other services offer advances for insurance premiums, which can help businesses cover the cost of insurance for their vehicles.

Finally, some freight factoring services offer back-office services, such as accounts receivable management and collections. These services can help businesses manage their accounts receivable and ensure that invoices are paid on time.

No matter what type of freight factoring service a business needs, it is important to understand the different types of services available and how they can benefit the business. By understanding the different types of services available, businesses can make an informed decision about which type of service is best for their needs.

Tips For A Smooth Factoring Application

June 19, 2023 By Accrue Factoring, Inc

Every day business owners juggle the cash flow demands of their companies. More than ever, they are turning to invoice factoring as a trusted solution, even when banks decline loans and credit lines.

If you are considering accounts receivable funding it pays to be prepared. Save time and money by understanding these five tips before making application to factor your accounts receivable: [Read more…]

How to Reduce the Costs of Factoring Invoices

June 2, 2023 By Accrue Factoring, Inc

When a business is strapped for cash they often turn to factoring accounts receivable as a financing solution. Of course a factoring company expects to earn a profit on the cash advance and charges a fee for their service.

Since the overall goal is improved cash flow, a company considering accounts receivable financing will carefully weigh the benefits against the costs. Here are five ways a business can reduce or offset the cost of factoring and still improve cash flow:

Strategy #1 – Early Payment Discounts

Use the money to take advantage of early payment discounts offered by suppliers and service providers. A standard early payment discount is 2/10 net 30. In this scenario the vendor will provide a 2% discount if the bill is paid within 10 days, with the full amount due in the standard 30 days. While the savings might seem small ($2.00 for every $100), over time it can really add up. It will also help offset the discount fee charged by factoring companies. If you don’t see an early pay discount on the invoice, then ask!

Strategy #2 – Bulk Purchasing

A supplier will often provide a reduced price for bulk purchases. If you can order 500 widgets for $1.00 each or 1,000 for $0.75 each it makes sense to take advantage of bulk pricing since this can equate to a savings of 25%, or more. Just be sure to purchase items the company is certain to need and utilize.

Strategy #3 – Target Fast Paying Customers

Time is Money and the length of time it takes a customer to pay on the invoice has a direct relation to the cost of factoring. The discount fee charged by the factoring company goes up the longer it takes your customer to pay. By targeting invoices with customers that normally pay quickly a company can reduce their factoring cost.

Strategy #4 – Delay Invoice Submission

Another way to make the “Time is Money” principal work for your business is to first age the invoices for 10-20 days before submitting to the factoring company for a cash advance. Even customers that typically pay in 45 days can be turned into 30-day customers by first aging the invoice for 15 days prior to factoring. Policies on this strategy can vary by factor so discuss the parameters upfront.

Strategy #5 – Increase Growth and Profit

If a company can increase profits by an amount greater than the cost of factoring it can make economic sense to consider this business financing option. An increase in working capital can provide the funds it takes to accept and fill another order. Additionally, it can contribute to increased profit margins since many overhead costs are fixed and may not incrementally increase with the cost of goods.

When a company wants to increase cash flow by factoring accounts receivables the impact of the factoring cost can be greatly minimized. Just be sure to consider these 5 cost reducing strategies that pay close attention to the timing of invoices and how the factoring cash advance is spent.